Austria's new aviation strategy: A thick book with many question marks

Sunrise at Vienna International Airport (Photo: Robert Spohr).
Sunrise at Vienna International Airport (Photo: Robert Spohr).

Austria's new aviation strategy: A thick book with many question marks

Sunrise at Vienna International Airport (Photo: Robert Spohr).
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The Austrian Ministry of Transport (BMK) published the so-called “Aviation Strategy 2040+” a few days ago. The extremely extensive document is intended to point the way for the domestic industry. However, in some areas it shows extremely ideological thoughts in favor of rail transport.

It is also noteworthy that Austrian Airlines is not only mentioned extremely prominently in many areas of the official document, but that there are also formulations with which the carrier is active in public relations. For example, the AUA is repeatedly referred to by the BMK as a "home carrier". The airline also uses this choice of words in commercials and media releases.

This article quotes a few passages from the well over 100-page "Aviation Strategy 2040+" as well as statements by the Ministry of Transport and, where appropriate, Austrian Airlines. Some formulations are difficult to classify without further explanation.

No answer as to how much the document cost

In the foreword to the strategy, Transport Minister Leonore Gewessler (Greens) writes, among other things: “The mobility system of the future must be convenient, affordable and climate-friendly. It is clear that aviation will continue to be an essential part of international transport in the future (...) 'Avoid, Shift, Improve'”. When asked how this could be reconciled with the flagship project "Minimum prices for airline tickets", the Ministry of Transport replied: "A regulation is planned by which ticket prices must at least cover the passenger-related taxes and fees, i.e. at least no longer under this part of the costs incurred. This currently amounts to around 40 euros, depending on the airport.”

The motto "Avoid, Shift, Improve" According to the ministry, this should be understood as follows: “Avoidance includes business trips that can be avoided through video conferences. Relocation means, for example, the shifting of goods transport from road to rail or the shifting of short flights and feeder flights to rail. Improvement includes, for example, the KlimaTicket as an expansion of the offer, better connections and frequencies, or the introduction of SAFs with lower CO2 emissions as a result.”

When asked why the "Aviation Strategy 2040+" was created with significant cooperation from the German DLR, the BMK explains: "For the "Study to evaluate the existing Road Map Aviation 2020 and to create the new aviation strategy", a selection procedure was carried out in accordance with the regulations. Four applicants submitted offers, with DLR submitting the most suitable offer and also representing the best value for money. DLR was commissioned accordingly.” When asked how much money was spent on the 100-page document, there was no answer.

Corona fleet cuts by AUA not mentioned at all

The document reads, among other things: “From the point of view of aviation, the past few years have underlined the role of Austria and Vienna Airport in particular as an attractive location - both on the supply and demand side as well as in the administrative framework. In addition to the growing hub activities of AUA, this was also reflected in the settlement of easyJet Europe and Eurowings Europe as well as the cargo airline DHL Air Austria.

When asked whether the BMK is aware that Eurowings Europe is flagged out to Malta, Easyjet Europe has not stationed a single aircraft in Austria, Austrian Airlines has significantly reduced its fleet and why the activities of Ryanair and Wizz Air, which together have around 1.000 employees in Austria are not mentioned, the BMK replies: "In the paragraph mentioned, only reference was made to air carriers with an Austrian operating license at the current time. The given market shares of Wizz Air and Ryanair are known, but have not been mentioned here, as the focus is on company settlements. Austrian Airlines has reduced its fleet, but continues to play a central role in connecting Austria. From all Austrian airports in 2019, airlines offered 23,2 million seats on 152 thousand thousand flights. Austrian was by far the airline with the largest seat offer with 10,1 million seats (44%). This was followed by Eurowings with 1,81 million (8%), Laudamotion with 1,41 million (6%), Wizz Air with 1,22 million (5%), Easyjet with 0,98 million (4%) and Lufthansa with 0,66 million seats (3%). Taking Swiss and Brussels into account, airlines in the Lufthansa Group accounted for a good 56% of the available seats,” said the BMK in a statement.

A spokeswoman for Austrian Airlines answered the question to what extent the network activities had been expanded in recent years: "After 2020, the corona pandemic and the associated measures have meant that the Austrian Airlines fleet has been expanded due to the phasing out of DASH and the reduction of 767 fleet was reduced. Nevertheless, in 2022 numerous destinations were included in the destination portfolio of Austrian Airlines (e.g. Los Angeles, Tokyo) and completely new destinations, especially in the tourism segment (e.g. Valencia), were added. In the meantime, other carriers have reduced their offer at the Vienna location or even withdrawn completely".

When asked which expansion activities were planned in the short or medium term, the carrier replied: "With the incorporation of four brand-new A320neos, Austrian Airlines is currently about to take a major step in fleet modernization, which also contributes to noise reduction at the location. Likewise, a rollover of the long-haul fleet should make a significant contribution to strengthening the Vienna hub before the end of this decade.”

Lufthansa Group and Austrian Airlines mixed up in the federal states

In a further passage, the hub function of Vienna Airport and the role of Austrian Airlines are particularly emphasized. The text reads: "(...) attaches great importance to the home carrier Austrian Airlines. (...) This includes both the connection of the federal state airports to the world aviation system as well as the medium and long-haul offer from Vienna and the importance of Vienna as a hub. (...) The hub function and the associated number of transfer passengers is also important for Vienna as a business location, since the economic viability of many flight routes depends on the transfer passengers".

Confronted with the fact that Austrian Airlines currently only connects the airports of Klagenfurt, Graz and Innsbruck to the Vienna hub, but has not been flying to Salzburg and Linz for some time, the BMK replied: "Austrian Airlines is still important when it comes to connecting the Provincial airports of Klagenfurt, Innsbruck and Graz: From Innsbruck Airport, the airlines offered 620 seats and 5.049 flights in 2019. The airline with by far the largest number of seats was Austrian with 272 (44%). The airlines offered 663 thousand seats and 6.459 flights from Graz Airport in 2019. The airline with by far the largest number of seats was Austrian with 358 thousand seats (54%). The airlines with by far the largest number of seats in Klagenfurt were Austrian with 90 seats (62%) and Eurowings with 41 seats (28%). The Vienna-Salzburg and Vienna-Linz routes have been replaced by attractive rail connections. The Lufthansa Group continues to play a central role in Linz: In 2019, airlines belonging to the Lufthansa Group accounted for 97% of the available seats from Linz.”

Austrian Airlines is of course aware of the fact that Salzburg and Linz are no longer served. A media officer from the airline explains the role of AUA in the federal states: “Salzburg and Linz are still quickly and conveniently connected to Vienna Airport with the AIRail product. The airports Innsbruck, Klagenfurt and Graz (in addition to the train connection from Graz main station) are also connected to Vienna by flight in the best possible compatibility with the Austrian Airlines flight schedule. Even with an increasing shift to rail (if the corresponding infrastructure allows for this), Austrian Airlines will continue and further expand the intermodal cooperation with ÖBB”.

Furthermore: “As soon as Vienna Airport can be reached from Graz and Klagenfurt in well under three hours, a shift to rail is planned. Since such a connection duration for the Innsbruck-Vienna route by rail is not to be expected in the near future, Austrian Airlines will continue to serve the route by plane. An expansion and optimization of the AIRail product is a priority for Austrian Airlines in terms of intermodal cooperation.

When asked about the BMK's assertion that many routes are only economically viable with transfer passengers, Austrian Airlines replies: "Basically, this statement applies to all long-haul flights (especially those that Austrian Airlines serves all year round and not just seasonally). One of the most striking examples is the Vienna-Bangkok route, on which an average of between 80 and 90% of the passengers are transfer passengers”. However, the Austrian economy gets almost nothing from transfer passengers apart from carbon dioxide emissions.

At Austrian Airlines, it has also been shown that the elimination of the feeder flights from Salzburg and Linz has meant that passengers travel to Vienna Airport by other routes. A spokeswoman said: "When the Linz/Salzburg - Vienna connections were shifted to rail, it became apparent that many passengers now either travel to Vienna Airport by car or choose the flight connection via another (non-) European hub. For this reason, Austrian Airlines is constantly working together with ÖBB to optimize the AIRail offer".

Is "home carrier" an advertising term of the AUA or not?

When asked why the advertising term “home carrier” for Austrian Airlines was included in the official document, the BMK answered: “Home carrier is a term commonly used in the industry for the network carrier at a location. In the case of Vienna Airport, this is Austrian Airlines”. The authorities did not comment on the fact that in Düsseldorf, for example, the term "home base carrier" is defined in such a way that an airline has to have aircraft and technicians available on site. The ministry has yet to explain why Ryanair and Wizz Air, which have aircraft based in Austria, are not considered home carriers.

The BMK justifies the assertion that many flight routes offered from Vienna-Schwechat without connecting passengers would not be economically viable as follows: "In air traffic in Austria in 2019, 80% of passengers used non-stop connections, while 18% on their Travel once connected and 2% twice connected. However, the proportion of people switching differs greatly depending on the source-destination region. This means that competitors who primarily offer tourist destinations are in some cases significantly less dependent on transfer volumes than the network carrier, which offers a significantly larger destination portfolio. Vienna Airport, for example, has a significant market share for transfer passengers originating from or destined for in Eastern Europe. The significance of the proportion of transfer passengers applies in particular to long-haul destinations.” The ministry’s statement is limping in that, for example, Ryanair offers more short- and medium-haul destinations in the 2022/23 winter flight schedule than Austrian Airlines.

A spokeswoman for the airline answered the question of what influence Austrian Airlines had in the creation of the “Aviation Strategy 2040+” as follows: “Together with numerous other stakeholders (e.g. other airlines and airports operating in Austria), Austrian Airlines was also supported by the Federal Ministry in the Development of the aviation strategy involved. The designation of Austrian Airlines as a "home carrier" is not to be regarded as an advertising term, but objectively reflects the business model of Austrian Airlines as an Austrian network airline based in Vienna".

AUA and Vienna Airport should launch a stopover program

The “Aviation Strategy 2040+” also stipulates that Austrian Airlines and Vienna-Schwechat Airport should set up a so-called stopover program. You can read about this in the document: “Constructive cooperation between home carrier AUA, the airport and the other stakeholders is essential for the competitiveness of Vienna/Austria in the intra-group competition between Lufthansa and Brussels, Frankfurt, Munich and Zurich. (...) Vienna Airport and AUA should also be supported in developing a stopover program for Austria (...)"

When asked why only Austrian Airlines was mentioned, but no other providers, how much money Vienna Airport or AUA will receive for the implementation and whether other carriers can also claim this, the Ministry of Transport said: "The support mentioned should not only be granted for specific airlines. A stopover program makes particular sense for network carriers, as they generate more transfer traffic, as shown above. This request was made specifically to DLR and the BMK as part of the stakeholder survey in the process of developing the strategy, but is already reflected in the government program. This is not about financial means, but about creating a suitable legal basis and, for example, clarifying visa issues for the shortened stay. The BMK is not the responsible body for many questions, but can act in a coordinating and supportive manner.”

A spokeswoman for Austrian Airlines explains the planned stopover program: “The aim of a possible stopover initiative is not to receive funding, but to support and strengthen transfer flows with a program that combines air, rail and city tourism in Vienna. With a Stop Over program, Austrian Airlines wants to use the attractiveness of Vienna/Austria as a tourist location in order to strengthen transfer traffic in the long term”.

Regarding internal competition within the Lufthansa Group, the AUA media officer said: “Global transfer traffic is also offered within the Lufthansa Group via different hubs. Whether a transfer traffic/long-distance connection remains or not often depends on the relevant framework conditions (costs, comfort) at the respective hub".

According to the BMK, you can work better on trains

In the "Aviation Strategy 2040+", the BMK emphasizes that the use of trains offers advantages compared to airplanes. You can read about this: “Basically, if travelers switch to the train, it can help to reduce operational emissions in the transport sector in the long term. (...) On direct connections, the railways can have competitive advantages even with slightly longer journey times compared to flight time, among other things because there are no security checks and almost the entire journey can be used as useful time. Added to this are higher frequencies, which enable more flexible travel planning”.

When asked, the Ministry of Transport explained the claim regarding usage time as follows: “The railway offers significantly more frequencies than is the case with air traffic, for example with an hourly service. This shortens waiting times to reach connections. Even if a flight arriving in Vienna is delayed, travelers are offered an alternative without long waiting times. For example, the daily service frequency in air traffic on the Linz-Vienna route was only 3-5 daily flights in the last full year in which the route was served. Example frequencies Vienna – Munich: train: approx. 13 direct connections per day (ÖBB and Westbahn), plane: approx. 6-7 direct flights per day (Austrian Airlines and Lufthansa). Example of usable time Vienna – Munich: Especially with short and medium-haul flights, the proportion of usable time on the train is significantly higher than on the plane, taking into account the necessary waiting times at the airport and the generally longer arrival/departure time from/to the airport, as the following example illustrates : Train: approx. 30' journey to the train station (not usable), approx. 15' buffer at the train station (not usable), approx. 4h travel time (fully usable), approx. 30' journey from train station to destination (not usable), total 5h15', of which approx. 4h can be used (approx. 76%), plane: approx. 60' drive to the airport (not usable), approx. 90' at the airport including check-in, security checks, boarding the plane (30 of which ' usable - waiting time at the gate), approx. 60' flight time (of which approx. 45' can be used in part - during the flight time between take-off and landing phase), approx. 75' from the gate to the destination including waiting for any luggage (not usable), Total: approx. 4h45', of which approx. 1h15' is partially usable (approx. 26%)”.

Confronted with the fact that, among other things, this led to a significant increase in the use of the railways in October of the previous year and trains had to be cleared again and again due to overcrowding, the BMK replies: "An open system without the obligation to reserve allows more flexibility, especially compared to air traffic. If you want to be guaranteed a seat on a specific train, you can make a reservation at a reasonable price. At the same time, overfilling remains an exceptional case. For example, only 0,3% of the trains were overcrowded on the Easter weekend. Railway companies are taking measures to increase the proportion of reservations, while at the same time the range of services is being continuously and consistently expanded and the railway companies are investing in sets with more seating capacity.”

Long-distance buses only as a supplement to the train

When asked about the fact that many routes in the route network of the Austrian Federal Railways are also served with diesel traction, but that electric locomotives are always emphasized in communication, the Ministry of Transport explains: “Around 90% of the transport performance on the ÖBB network is already provided electrically. In long-distance traffic it is almost 100%, since the long-distance routes are electrified with a few exceptions. The complete electrification of the ÖBB network will be implemented in the medium term through the use of battery electric trains or through electrification on the track side. A further 2030 kilometers of railway line will therefore be electrified by 500.”

Long-distance buses, on the other hand, are neither mentioned in the aviation strategy nor are they included in the Austrian climate ticket. The BMK: “Austria is already very well developed with high-level rail infrastructure, in particular the western route Vienna – Salzburg – western Austria/Munich. An extensive expansion program (Semmering base tunnel, Koralmbahn) is currently running along the southern route (Vienna – Graz – Klagenfurt); The most important routes within Austria are well served by rail. Austria is also well networked internationally, with the most important destinations in neighboring countries (Munich, Budapest, Prague, Zurich) being 1 or 2 hour intervals by train. Long-distance buses supplement the range of rail services and are generally operated independently by the companies at their discretion. Often these are long-distance bus connections on parallel routes with longer travel times than the train (e.g. Vienna – Munich, Vienna – Frankfurt).”

Star Alliance is to grow in Vienna – Skyteam and Oneworld in the federal states

The "Aviation Strategy 2040+" states that the aim is to further strengthen the market position of the Star Alliance at Vienna-Schwechat Airport. At the federal state airports, advantages are seen if there are additional Oneworld and Skyteam connections. There is also great potential for Airbus A321XLR connections.

In the document you can read: “Vienna’s connectivity has developed positively in recent years. This is also due to the strong diversification of the airline portfolio, new market entries and product expansions (...). At the federal level, Austria supports the airports in facilitating needs-based flight connections, for example by further developing relationships with other aviation authorities and concluding bilateral agreements. The further development and diversification of the airline portfolio at the airports is intended to reduce dependency on individual airlines. New airlines, for example from the Star Alliance, could be helpful in increasing the number of transfers via the Vienna hub, for example between Eastern Europe and the USA. New hub connections from the federal state airports to the hubs of the Skyteam and Oneworld alliances would increase the choice for passengers (...) New, fuel-efficient small long-haul aircraft will open up new potential for the direct connection of long-haul destinations in the coming years. The federal state airports should also benefit from this".

When asked why the focus is on the Star Alliance with regard to Vienna, the BMK replies: "In the text passage cited, the Star Alliance is mentioned as an example ("New airlines from the Star Alliance, for example, could be helpful in reducing the number of transfer passengers via the Vienna hub..." ) and the number of transfers is generated in particular by the network carrier. The diversification of the airline and destination portfolio is also aimed at the entry of new airlines – also from other alliances.”

With regard to the federal state airports, the ministry said: “This relates in particular to the Linz and Salzburg airports, where Austrian is no longer represented. Market entry by airlines from other alliances could reduce the dependency of federal state airports on the Lufthansa Group. An example would be the connection from Salzburg to Dubai with flydubai.” However, the ministry does not mention the activities of Ryanair and/or Wizz Air.

When asked why the point-to-point offers from the Austrian airports, which have also contributed to the fact that Austrian Airlines has lost market share in recent years, are just as unmentioned as the expansion of the network connections of Turkish Airlines, Emirates Airline, Qatar Airways , Etihad Airways and other carriers, the Department for Transport explains as follows:

“Due to various market entries and exits, the competitive landscape in the Austrian aviation market has changed significantly over the last decade. The Air Berlin Group with the Austrian subsidiary Niki as the second largest provider left in 2017. As a result, low-cost airlines have entered the market or have significantly expanded their offering. Austrian Airlines, as the market leader, was able to increase its capacity by 2010% from 2019 to 20 million seats between 8,4 and 10,1. The entire Lufthansa Group had a market share of 2019% in 13 with around 56 million seats offered. Major non-EU network airlines also saw strong growth, including Turkish Airlines, Emirates, Aeroflot and Qatar Airways. This importance is reflected in the strategy document in exactly the same way.”

When asked to what extent Austrian Airlines can benefit from the market entry of other Star Alliance carriers, a spokeswoman explains: "Increasing the connection of Star Alliance partners gives Austrian Airlines the opportunity to expand its destination portfolio through code sharing and to generate additional transfer flows".

BMK wants to establish long-haul flights with Airbus A321XLR from the federal states

The BMK sees the question of whether non-stop connections or transfer connections from the federal states as more climate-friendly: “A combination of rail and air travel is a more climate-friendly option when changing within Austria or the neighboring countries. On longer routes to consider various factors, such as detour to the hub and CO2 emissions per passenger-kilometer.”

The machine type Airbus A321XLR is hidden behind the cryptic name "small long-haul machine". Austrian Airlines has already ruled out including such aircraft in its fleet. The BMK justifies the potential as follows: “Potentially accessible regions with the Airbus A321 XLR include the North American East Coast, the Midwest, almost the entire African continent and large parts of Asia. In addition to European airlines, airlines from third countries in particular could see potential.”

An AUA media officer explains on the subject of Airbus A321XLR from the Austrian federal state airports: "From the current perspective, the inclusion of long-haul connections from the federal states does not appear commercially viable, since the long-haul connections from Vienna are already heavily dependent on transfer passenger flows from other European airports".

The AUA sees great advantages in the network model “The hub and spoke concept also offers the possibility of mapping transfer flows on short and medium-haul flights and thus offering routes that would not be fully utilized by pure point-to-point demand. With a higher load, the specific fuel consumption can be reduced. The Lufthansa Group is one of the largest SAF buyers in Europe and has secured 400.000 tons of SAF from OMV for the coming years. Austrian Airlines relies on sustainable fuels as one of the greatest levers for decarbonisation in aviation".

In the “Aviation Strategy 2040+”, the BMK obviously focuses on transfer connections. However, in direct comparison with non-stop flights, these inevitably emit more carbon dioxide. However, the Ministry did not elaborate on this fact.

When asked how the Austrian federal states could benefit from the expanded international rail connections, the BMK said: “Good rail connections are very important for the federal states and the travel destinations within the states, for example for tourists or business travellers. Some federal states, together with ÖBB and BMK, have recently been increasingly focusing on expanding international rail connections and advertising accordingly, such as the state of Tyrol (see https://www.tirol.at/reiseservice/anreise/anreise-mit-dem-zug ). At the same time, the range of international direct connections from ÖBB is being continuously expanded together with the transport customers, for example with the recently introduced Nightjet connections from/to Amsterdam and Paris.”

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